Search online for any words of wisdom from Bill Miller of Legg Mason. He is pretty much a technology "value investor" as much as one exists. Not too many people have reconciled value investing with tech. BTW, :welcome
kinda makes sense being that tech in general is so volatile and unpredictable to an extent... being a computer science and business major i do know the dificulties of what can or will happen in 1 year or 5 years.... chahine
Tech stocks should have lower values because of the competition. A competing technology can wipe out a company in months. Tech stocks don't deserve great valuations because the business is so transitory and price sensitive. They are all discount happy and think market share means something. I say stick to the tech stocks with long operating histories and steady earnings.
so u are saying Intel,microsoft are kind of companies to look at because they have growth, and steady income....?? just wondering chahine
[quote:a8f1c0797d="chahinemm"]so u are saying Intel,microsoft are kind of companies to look at because they have growth, and steady income....?? just wondering chahine[/quote:a8f1c0797d] I would say that would be the way to look at tech companies. Its hard, i dont deny that. God knows over the last year i have tried to come up with value investments in tech and its mucho hard. Its even harder to stick to your convictions when u choose to avoid certain names because they are not good 'value' and then the go up 200% in 6 months. But none the less intel, microsoft are the type of companies i would personally look at. They all dont have to be as large as them, certainly there are much smaller players that domniate their little niches the same way the big ones dominate their's. Still once u find companies like that, there is still the challenge of avoiding the classic value traps and finding companies that are both good on operating metrics AND cheap valuations! Infact i havnt found one yet :( but then i dont look for cheap tech companies full time so i cant say that i have dedicated a whole lot of time to that search! Akaz
at least in my opinion u are in the right track.... i have had 2 companies in my hand right now 1 do hold but i should admit for a short term... VSL and MTE they are indian companies that deal with telecom and i beleive at the rate the indian economy is growing they will play an important factor in the next couple of years... my goal in these companies is to have the opportunity to grow my capital but in my opinion would be an excellent long term play... they are a virtual monopoly and they are subsidized by the gov. even if they go private they will make money and for sure grow... take a look at it and let me know what u think... if i come across more i will keep posting them here. chahine